date: 19 September 2011
embargo: For immediate release
Commenting on the discussion paper on executive remuneration published today (Monday) by the Department for Business, which includes a proposal for employee representation on remuneration committees, TUC General Secretary Brendan Barber said:
'The UK's flawed executive pay culture has allowed those at the top to award themselves vast pay increases without any link to performance. This system contributed to the financial crash and needs urgent reform.
'Workers' representatives on remuneration committees will help regain public confidence in executive pay by adding a sense of perspective and forcing directors to explain how their rewards relate to those offered to their workforce.
'But any attempt to seriously reform executive pay will be fiercely resisted by vested interests in the City - many of whom rely on the status quo for their own inflated salaries - and the government must be prepared to stand up to them.'
NOTES TO EDITORS:
- The discussion paper is available atwww.bis.gov.uk/Consultations/executive-remuneration-discussion-paper
- All TUC press releases can be found at www.tuc.org.uk
Issued: 19 September, 2011